Saudi Aramco acquires CO2-based polyol technology from Novomer

In line with the Saudi Vision 2030 objectives of economic diversification and job creation, the country’s largest petrochemical/oil company Saudi Aramco has acquired the Converge product line and associated operations and technologies from US-based Novomer. The deal is valued at up to US$100 million.

Converge is manufactured from and contains a significant portion of Carbon Dioxide (CO2). The technology provides a high-performance, cost competitive and more sustainable alternative to conventional petroleum-based polyols that are used in coating, adhesive, sealant, and elastomer (CASE) applications, including within the flexible and rigid foam manufacturing segments. Applications cover a broad spectrum from automobile seats to building insulation panels.

Amin H. Nasser, Saudi Aramco President/CEO said: “Some of Saudi Aramco’s most significant achievements in recent years have been in developing new international partnerships in the downstream space. There is compelling industrial logic to the Converge polyol technology deal as it enables the conversion of waste CO2 into cleaner, high-value end-products with significant performance, cost and carbon footprint improvements.”

Abdulaziz Al-Judaimi, the Acting Senior Vice President of Downstream, Saudi Aramco also said that the acquisition of the Converge technology is alpart of Saudi Aramco’s efforts to continuously seek the best possible opportunity for the commercialisation of specific downstream technologies on a large-scale. Judaimi added: “By providing access to reliable feedstock supplies, financial stability and unrivalled R&D investment and focus, Saudi Aramco will accelerate the commercialisation of these exciting new polyol materials. This will help spur growth in the production of more sustainable finished and semi-finished products in the petrochemicals conversion sector, including within the small and medium enterprise sector in Saudi Arabia.”

Compared to conventional polyols, Converge polyols have approximately one-third the carbon footprint. When incorporated into polyurethane formulations, they are said to demonstrate superior material performance including: increased strength; increased abrasion, chemical and weather resistance; increased adhesion, hardness and tear-strength; greater load bearing capacity; and reduced heat of combustion.

Saudi Aramco will manufacture and market Converge and associated products through its subsidiary, Aramco Performance Materials LLC (APM). It is planning for full-scale production facilities in Saudi Arabia to support the manufacture of speciality and intermediate chemical products to supply a wide variety of industries.